When the overall market is stable but lacks energy, it is an active period for small cap stocks, as the overall market energy cannot meet the needs of large-scale hotspotsIndividual stock market trendsThe star ignites, among which the small cap stock market is even more beautiful under low energy. Due to the difficulty of meeting the sustainability of the market with small energy, small cap stocks tend to rise rapidly and have a short duration, making them suitable for short-term operations.
Sudden positive news - newly listed stocks
No matter what state the market is in, if there is a sudden major positive news announcement, it is often an active period for low-priced new stocks. Because there are often old funds entering or being trapped in old stocks, new funds are unwilling to lift the cart for old funds, let alone relieve them. Therefore, after major positive news is announced, newly listed stocks often become the target of new capital's "preconceived" attacks.
Adjustment period - Zhuanggu
The adjustment of the overall market is an active cycle for the stock market. Due to the disappearance of market hotspots, the stock market may either rescue itself due to the main force being trapped, or take advantage of the weak market to build positions ahead of potential themes... The stock market in the weak market is like "soybean oil lamps" in the night sky, although they cannot illuminate the entire market, they can also prevent the investing public from despair. At the same time, it can still tempt "niche investors" to "add fuel to the bean oil lamp" or attract "moths to the flame".
Wave band sharp decline - indicator stocks
After a sharp decline in the market, it is the active period for the index stocks of the market. The indicator stocks that can quickly reset the market after a sharp decline are definitely those that can affect the overall situation. Because the effectiveness of "four or two to pull a thousand pounds" is great, and also because the cost of protecting low-priced stocks is low.
Final adjustment - oversold low-priced stocks
After the end of the large wave adjustment, it is an active period for oversold low-priced stocks. Because the oversold low-priced stocks with the largest initial decline have the cleanest risk release and the strongest technical rebound requirements. As the trend enters the final stage of adjustment and has not yet reversed, it is difficult to form new hotspots, which has given the opportunity for oversold low-priced stocks to perform.
Bull market established - high priced stocks
The establishment of a bull market is an active period for high priced stocks. High priced stocks are the "aristocratic class" of the market, ranking at the top of the market. After the market enters a bull market stage, they need to open up the upper range space, create bull market space for the market, and play a role in "passing on, helping, and leading" to mid to low priced stocks.
